What Frugal Retirees Can Buy Used, Share or Borrow Instead of Paying Full Price

Many retirees already practice smart financial habits, having adopted a frugality mindset years ago. However, being on a fixed income, it’s only understandable that many are concerned that their money will run out as they continue to “pay themselves” for a longer period of time.

While healthcare costs increase with age, less activities, work expenses and debt usually mean the average retired person spends less money in retirement. Yet, according to 2024 Federal Reserve Bank of St. Louis data, the average annual expenditure for a person 65 or over was still a sizable amount of $61,000.

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It’s become necessary — nay, even fashionable — to be thrifty. For retirees, many of whom lived more lavishly in the past, there’s no harm in getting more when you’re making less. Instead of paying full price, here’s what frugal retirees should be targeting to share, borrow or buy used.

Home Is Where the Savings Are

As the United States’ population continues to age rapidly, there’s something to be said about “The Golden Girls” arrangement of reducing expenses by sharing a home among friends or older adults.

In fact, since 2019, the proportion of homeowners aged 65 and older taking in roommates has more than doubled — a faster increase than in any other age group, according to Realtor.com.

For retirees who own their home, there’s a gold mine to be had renting out a room to cover mortgage payments, property taxes, household bills and loneliness pangs. For others, lower costs and companionship can come via one of many non-profit home-sharing programs that connect someone looking for a place to live with a provider who has an extra room or separate unit available.

Used Is Almost Always Cheaper

Today’s frugal seniors in their 80s have probably been shopping at thrift stores since the 1980s. However, it’s never too late for any retiree to significantly lower their expenses by changing their consumption habits from buying brand new to gently used.

There is no reason to buy anything new unless price and value add up. This is especially true for things like clothing, furniture, tools and exercise equipment, which can be found cheaper than new and in great condition in the wild.

Online sites like Facebook Marketplace or OfferUp are ripe with discounts, but don’t forget to frequent your local Buy Nothing group, garage sales and community listings for good deals and great steals.

Share and Swap With Neighbors

 As the world increasingly turns towards digital communities for relationships, shared resources, social interaction and “the invisible glue of neighborhoods is continuing to erode,” according to Axios.

Americans of all ages are engaging less with their neighbors, as “homes have become entertainment bunkers that let Americans stream, scroll, get directions and find recommendations without knocking on a neighbor's door,” the site wrote.

Unfortunately, knocking on your neighbor's door to borrow a power washer, carpet cleaner, grass trimmer or simply a cup of sugar is a dying practice as community and relationship building in society fades away.

However, collective sharing works better when people are struggling. Exchanging DIY expertise, lending underused tools and equipment, splitting bulk grocery orders and starting a community borrowing group are things that once started, can save you money and change your life in wonderful ways.

Don’t Toss It, Fix It

Yes, most things now are pricey to replace, but don’t let throwaway culture deceive you into thinking everything is disposable. Taking care of the things around us allows them, in turn, to take care of us.

Many household items deserve a second chance and should not be discarded when they can be repaired. If you’re familiar with the mechanics of something, you’ll quickly figure out if it’s worth fixing or dumping. If you don’t, then jump on YouTube and find a tutorial.

According to the Inspired Housewife blog, there are basic DIY skills everyone should have, including clothing repair, small appliance troubleshooting, furniture rehab techniques and plumbing and hardware fixes. Besides the satisfaction that comes with extending the life of an item, you could save hundreds or thousands annually by problem-solving restoration.

With so many Americans living paycheck to paycheck, many retirees are prioritizing buying used items, sharing community resources and borrowing infrequently used items rather than paying full retail price. These habits will save you money and provide a good amount of social happiness.

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.

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